Indonesia’s soybean meal import policy could cut poultry farmers’ profits in 2026

Plans to transfer soybean meal (SBM) import authority from private companies to state-owned enterprise Berdikari starting in 2026 could negatively impact the performance of publicly listed poultry companies, according to BRI Danareksa analyst Victor Stefano.

This policy is aimed at ensuring nationally coordinated feed supply and pricing. Soybean meal accounts for approximately 20-25% of the cost of poultry feed and is the largest imported feed ingredient in Indonesia. To avoid market disruptions, private companies will be allowed to directly import SBM until March 31, but Berdikari will coordinate the volumes, with the option to request additional quotas if necessary.

The government has also banned excess stockpiling to stabilize prices. Although Indonesia traditionally sources soybean meal from Brazil and Argentina, centralizing imports could reduce sourcing flexibility. If trade agreements lead to increased purchases from the US, where soybean meal typically sells at a premium, the base cost of feed could increase by approximately 2%.

Additional costs could arise from trade margins, which BRI Danareksa estimates to be around 5%, resulting in a potential increase in SBM prices of approximately 7%. Such increases, effective April 2026, could reduce 2026 EBITDA by 1.1-3.8% and net profit by 1.4-8.1%.

“While the new regulations will hurt integrators’ margins and revenues in the short term, we believe that large players will benefit in the long term due to economies of scale,” noted Mr. Stefano.

Tags: Indonesia, soybean meal, imports, restrictions